We are behind on our house payments, How can we get caught up or will it be better to let the bank take it?

Question

We live in MI and not only are we behind on our house payments but it is now affecting our other bills. It seems like when we make our house payment for the month the next one is due and the bank is not helping. We tried to take out a second mortgage but they are telling us our house is not worth what it was when we bought it because of our neighbors. We are at a lost and would like any advice someone could give us. We are taking about just letting the bank take it.

Answer 1

talk to the bank.  They have a department that is wet up to handle these kinds of issues.  but talk to them ASAP.

Frankly, in today's market they don't want your house.  sometimes they will be willing to forgive the back payments or at least move them to the end of the mortgage.

Answer 2

I would recommend calling or emailing this guy (Clark Howard) . Its free. He has a support center for stuff like. I'm from Canton, Mi and I wish you all the luck. Trust me he knows what he's talking about. Good Luck.

Answer 3

Letting the bank take your house is a terrible plan. Not only will you lose your place to live, you will also trash your credit. With bad credit, forget being able to buy another house anytime soon, and on top of that, it will be hard to even get a good apartment because good landlords typically also check credit history.

That said, there are a lot of options. The first one should be to try and handle it on your own. You have two options - earn more, or spend less. I would suggest first cutting your spending to a bare minimum until you are back on your feet. No restaurants, no new clothes, no unnecessary trips anywhere, no movies, do away with the cable tv, etc. That will save you several hundred dollars a month by cutting out frivolous things. Then, I would try to increase my income. The most obvious choice is to work some overtime or take a second job on the weekend or something. If that isn't an option, try eBay or craigslist to sell things from around the house that you don't us - clothes, toys, sporting goods, anything that isn't a necessity. Most everything is replaceable once you get on your feet again. Financial discipline is key to helping yourself.

If you are unsuccessful at this (and I'm positive that you will be successful if you have the desire to do so), then try giving your bank a call. They may let you defer a few payments so you can get back on your feet, or they may modify your loan so your payments become lower for a time. I would not count on either of those options, however, because there is only a small chance your bank will help.

I hope this was helpful. Good luck!

Answer 4

if you can not afford the house turn in back to the bank (do not hide from your creditors )

Answer 5

Hi

Please contact your Century 21 Real Estate agent  nearest your property ASAP and ask that agent all options . I hope you will happy to do that.

Steven

Answer 6

i have been in your shoes, many times the bank will take the payments and put them at the end of the loan and let you start at the point you are at now.

Answer 7

Call your bank and ask for the Loss Mitigation department.  You will need to explain your situation and be prepared to show them a monthly budget with your income and expenses, along with documentation to prove it.  Tell them you want to keep the house and that you would like to work with them to modify the terms of your mortgage so you can afford it.  If it isn't worth enough for them to give you a home equity loan, that means it has less than 20% equity and they will not want to foreclose on it.  Make sure you tell the Loss Mitigation dept that you don't have enough equity for the home equity loan, as they may not know what the other department told you.  

Its better to keep your house because the mortgage lending guidelines are getting so strict after all of the recent trouble.  If you lose your current house, you might not be able to get a conventional loan to buy another one for at least five years.

Answer 8

Honor your financial commitments- put the house on the market and eat mac-and-cheese and ramen noodles until it sells.

  You shouldn't have taken on an obligation if you couldn't handle it- you now have a duty to fulfill that obligation.

  The prevailing idea in this country of people just walking away from their commitments and letting someone else pay the price is worrisome to me.

  Have some self-respect and some intestinal fortitude.